The plant, which will be located in the Coega Industrial Development Zone in the Nelson Mandela Metropolitan Municipality, is expected to produce bio-diesel and pharmaceutical glycerine from soya beans from South Africa and abroad.
This is expected to begin in the last half of 2009.
The investment by Rainbow Nation Renewable Fuels Limited (RNRF) will provide a significant boost to the South African and Eastern Cape economies.
Announcing the investment on Monday, 17 March 2008, RNRF Managing Director Geoff Mordt said this plant marks the first major commitment to progressing the fledgling South African bio-fuels industry.
“RNRF plans to deliver a renewable fuel that will reduce the harmful effects of greenhouse gases and toxic emissions produced by fossil fuels," Mordt said.
“The bio-diesel will be made from a feedstock produced by South African farmers - this is an important day for the creation of a local bio-fuels industry in this country.”
The project is expected to generate R4.5 billion in turnover annually and create 350 new permanent jobs.
An additional 725 employment opportunities in related sectors and 800 jobs during the construction phase are also expected to be created.
Explaining how the facility will benefit community at large, Mordt said the operation will improve food availability for South Africans by increasing local production of soybean meal and embraces government's policy on food security.
South Africa's soybean farmers and livestock industries such as poultry, pork, dairy, beef and aquaculture producers stand to reap enormous rewards.
“We are currently working with farmers, agricultural cooperatives and emerging-farmer groups to increase the local supply of soybeans and are looking to expand our supplier base significantly."
He said production will be a boost for local livestock industries and will help improve the nation's balance of payments.
“Soybeans are an ideal bio-diesel feedstock in South Africa, helping to ensure the nation's food security.
“Growth of the local soybean industry will strengthen local agriculture and rural development, adding a key source of protein to the human food chain as well as providing a sustainable feedstock for premium quality bio-diesel.
“South African imports of soybean meal reached 812,000 tons last year, up 20% on the previous year.”
The facility will consume one million tons of soybeans annually providing a consistent local demand that South African farmers can rely on year after year.
The investment is in line with the provincial government Accelerated and Shared Growth Initiative of South Africa scheme, which relies heavily on bio-fuel production from grains, including soya and canola.
Article published courtesy of BuaNews
